The long-term expected rate of return on commodities is ‘zero,’ according to Mark Matson of Matson Money.
“Equities are the best long-term creators of wealth and if you own a diversified portfolio, you already own commodities in all of your stocks, so don’t double down—it doesn’t make sense for long-term investors,” Matson told CNBC.
Meanwhile, Joseph Duran of United Capital Financial Partners said the decline in commodities is “healthy” over time, and allows for sustained growth. His best plays are multinational mega-cap names, as they are able to take advantage of global growth.
“People are realizing that QE3* is off the table and that means less money—and less money means less money for commodities,” he explained.
Duran Likes:
IPath S&P VIX
IShares S&P Global 100
JPMorgan Strategic Income Opportunities
* a hypothetical third round of quantitative easing.
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AIG
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Bank of America
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Disclosures:
No immediate information was available for Duran or Matson.
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